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B. When a Redevelopment Project Area is established, the existing equalized
<br /> assessed value of the property in the area is determined (the "Base"). The real
<br /> property taxes applied to the base, when collected, is distributed to the school
<br /> district, the county, the municipality and other taxing bodies. The real property
<br /> taxes that are applied to the increased equalized assessed value above the Base,
<br /> when collected, are distributed to the municipality for deposit in a special fund,
<br /> This is the "Tax Increment".
<br /> C. For a municipality to establish a TIF District, the municipality must determine
<br /> that the Redevelopment Project Area, as a whole, would not develop without the
<br /> assistance to be provided by TIF.
<br /> D. The Municipality undertakes certain activities or agrees to pay certain private
<br /> costs as incentives to make the Redevelopment Project Area attractive for private
<br /> redevelopment. The costs connected with these actions by the municipality are
<br /> paid for with the Tax Increment generated by the increased assessed value caused
<br /> by new private development. The types of activities include, among others:
<br /> construction of public improvements, acquisition of property, relocation costs,
<br /> demolition of buildings, site preparation, creation of certain training programs,
<br /> developing planning studies, the rehabilitation of existing structures and the
<br /> construction of certain facilities for other taxing bodies (under limited
<br /> circumstances). The private costs that a municipality can pay include in part:
<br /> helping to defray part of the developer's interest costs and reducing the cost of
<br /> land acquisition.
<br /> E. The area being considered must qualify as a blighted area or a conservation area
<br /> or a combination of the two. In addition, an area may also qualify as an industrial
<br /> park conservation area, if the municipality meets certain high unemployment
<br /> conditions. To qualify as a blighted area, the area must contain, for improved
<br /> property (land that is not vacant), at least 5 out of 13 factors. These are: (1)
<br /> dilapidation, (2) obsolescence, (3) deterioration, (4) illegal use of individual
<br /> structures, (5) structures below minimum code, (6) excessive land coverage and
<br /> overcrowding of structures and community facilities, (7) lack of ventilation, light
<br /> or sanitary facilities, (8) inadequate utilities, (9) excessive vacancies, (10)
<br /> deleterious land use or layout, (11) environmental clean-up, (12) declining
<br /> assessed value and (13) lack of community planning.
<br /> F. For vacant land, the area must contain 2 of the following 6 factors: (1) obsolete ',
<br /> platting, (2) diversity of ownership (3) real estate tax and special assessment tax I
<br /> delinquencies, (4) environmental contamination, (5) declining assessed value and ',
<br /> (6) deterioration of structures or site improvements on vacant land. �i
<br /> G. There are, in addition to the above, 6 individual factors that would qualify vacant
<br /> land as blighted. They include: (1) land that was blighted before becoming
<br /> vacant, (2) unused quarries, mines or strip mine ponds, (3) unused railyards, rail
<br /> tracks or railroad rights of way, (4) chronic flooding that adversely impacts on
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